ARL.L Regulatory News (ARL)

28 Sep 2007 14:12

Arlington Group Ltd28 September 2007 ARLINGTON GROUP LIMITED PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 MARCH 2007 Incorporated in Bermuda with registered number 36035 CHAIRMAN'S STATEMENT Dear Shareholder: RESULTS I am pleased to report upon the results for the year ended 31 March 2007 whichhave been produced under International Financial reporting Standards. The audited consolidated financial results of the Group for the period underreview show a profit after taxation of £265,000 (2006: £2.8 million (restated ontransition to IFRS)). Basic earnings per share (EPS) per share were 0.41 pence (2006: 4.37 pence),with fully diluted EPS at 0.41 pence (2006: 4.36 pence (restated on transitionto IFRS)). The net cash position at the Balance Sheet date was £13.55 million (2006: £6.09million) At 31 March 2007, the Diluted Net Asset Value per share at 31 March 2007 was55.85 pence per share (2006: 55.21 pence per share after payment of maidendividend (restated on transition to IFRS)). CURRENT YEAR'S TRADING As highlighted in the half year statement, the year under review proved to be achallenging period for the Group; however, performance in the second halfimproved thereby delivering positive returns for the whole year from the overallinvestment strategy, with Arlington Special Situations Fund (ASSF) andCopenhagen Opportunities Fund (COF) being the most significant contributors POST BALANCE SHEET EVENTS In May 2007 the Company invested into a new BVI-registered fund which applies amarket neutral strategy in large cap US equities. The investment currentlystands at €10 million. PROPOSED DIVIDEND The Directors do not propose a dividend. ANNUAL GENERAL MEETING The Company's AGM will be held at 2108, Gloucester Tower, The Landmark, PedderStreet, Central, Hong Kong on Tuesday 16th October 2007 at 18:00 hours. Once again my fellow Directors and I would like to thank everyone who has workedso hard in supporting the success of the Group and wish to express our gratitudefor their continuing support and commitment. NICHOLAS BARHAM 28 SEPTEMBER 2007 CONSOLIDATED INCOME STATEMENT FOR YEAR ENDED 31 March 2007 2007 2006 Note £000 £000 NET TRADING INCOME 3 2,704 4,738Operating expenses (2,794) (2,661) _______ _______ OPERATING (LOSS)/PROFIT 4 (90) 2,077Finance income 7 400 936 Finance costs 8 - (20) _______ _______ PROFIT BEFORE TAXATION 310 2,993Taxation 9 (45) (644) Profit for the year from discontinued 10 - 486operation _______ _______ RETAINED PROFIT FOR THE FINANCIAL YEAR 265 2,835 _______ _______ Earnings per share 11 - basic (pence) 0.41 4.37- fully diluted (pence) 0.41 4.36 Earnings per share from continuing 11operations- basic (pence) 0.41 3.62- fully diluted (pence) 0.41 3.61 The Group has no recognised gains or losses other than the results for the year as set out above. CONSOLIDATED BALANCE SHEET AT 31 MARCH 2006 ASSETS NON-CURRENT ASSETS 2007 2006 Note £000 £000 £000 Property, plant and equipment 14 21 29 _______ _______ 21 29 _______ _______ CURRENT ASSETSTrade and other receivables 15 348 1,100Held for trading investments 16 23,566 31,509Property held for resale - 579Cash and cash equivalents 17 13,546 6,086 _______ _______ Total current assets 37,460 39,274 _______ _______ TOTAL ASSETS 37,481 39,303 =================== EQUITY AND LIABILITIESEQUITYShare capital 24 323 323Capital redemption reserve 3 3Shares to be issued 44 39Retained earnings 36,596 37,623 _______ _______ - - Total equity 36,966 37,988 _______ _______ CURRENT LIABILITIESTrade and other payables 18 515 1,311 Deferred tax liabilities 19 - 4 _______ _______ - -Total current liabilities 515 1,315 TOTAL EQUITY AND LIABILITIES 37,481 39,303 _______ _______ COMPANY BALANCE SHEET AT 31 MARCH 2006 ASSETS NON-CURRENT ASSETS 2007 2006 Note £000 £000 Investments 12 293 293Property, plant and equipment 14 21 29 _______ _______ 314 322 CURRENT ASSETSTrade and other receivables 15 336 1,081Held for trading investments 16 23,566 31,489Cash and cash equivalents 17 13,250 5,163 _______ _______ Total current assets 37,152 37,733 _______ _______ TOTAL ASSETS 37,466 38,055 ______ _______ EQUITY AND LIABILITIESEQUITYShare capital 24 323 323Capital redemption reserve 3 3Shares to be issued 44 39Retained earnings 36,003 37,013 _______ _______ Total equity 36,373 37,378 _______ _______ CURRENT LIABILITIESTrade and other payables 18 1,093 677 _______ _______ Total current liabilities 1,093 677 _______ _______ TOTAL EQUITY AND LIABILITIES 37,466 38,055 _______ _______ CONSOLIDATED CASH FLOW STATEMENT FOR YEAR ENDED 31 March 2007 CASHFLOWS FROM OPERATING ACTIVITIES 2007 2006 Note £000 £000 Group operating (loss) / profit from continuing (90) 2,077operationsAdjustments to reconcile group operating profit tonet cash inflows from operating activitiesLoss before tax from discontinued operations - 12Depreciation of property plant and equipment 8 192Share based payments 5 -Decrease in trade and other receivables 749 1,724Decrease in trade and other payables (453) (2,947)Decrease in stocks - 100Decrease /(Increase) in held for trading assets 8,522 (20,101) _______ _______Net cash flow from operating activities 8,741 (18,943)Taxation paid (389) (1,613) _______ _______ Net cash from operating activities 8,352 (20,556) _______ _______ CASHFLOWS FROM INVESTING ACTIVITIES Interest received 400 902Dividends received - 1Sale of property plant and equipment - 578Sale of subsidiary undertaking - 1,840Bank balance of disposed subsidiaries - (89)Purchase of property plant and equipment - (12) _______ _______Net cash used in investing activities 400 3,220 _______ _______ CASHFLOWS FROM FINANCING ACTIVITIES Interest paid - (18)Interest element of hire purchase and finance lease - (2)Dividends paid to equity shareholders of the parent (1,292) -Purchase of own shares - (126)Repayment of loans - (161)Capital element of hire purchase and finance lease - (11) _______ _______Net cash used in financing activities (1,292) (318) _______ _______ Net increase/(decrease) in cash and cash equivalents 17 7,460 (17,654)Cash and cash equivalents at the start of the year 6,086 23,740 _______ _______Cash and cash equivalents at the end of the year 17 13,546 6,086 _______ _______ COMPANY CASH FLOW STATEMENT FOR YEAR ENDED 31 March 2007 2007 2006 Note £000 £000 CASHFLOWS FROM OPERATING ACTIVITIESCompany operating (loss) / profit from continuing (95) 2,135operationsAdjustments to reconcile company operating profit tonet cash inflows from operating activitiesDepreciation of property plant and equipment 8 10Profit on disposal of fixed asset investment - (500)Share based payments 5 -(Decrease)/increase in trade and other receivables 745 (849)Increase in trade and other payables 416 309Decrease /(Increase) in held for trading assets 7,923 (23,480) _______ _______Net cash flow from operating activities 9,002 (22,375)Taxation paid - - _______ _______ Net cash from operating activities 9,002 (22,375) _______ _______ CASHFLOWS FROM INVESTING ACTIVITIESInterest received 377 855Dividends received - 3,101Sale of fixed asset investments - 1,840Purchase of property plant and equipment - (4) _______ _______Net cash used in investing activities 377 5,792 _______ _______ CASHFLOWS FROM FINANCING ACTIVITIESDividends paid to equity shareholders (1,292) -Purchase of own shares - (126) _______ _______Net cash used in financing activities (1,292) (126) _______ _______ Net increase/(decrease) in cash and cash equivalents 17 8,087 (16,709)Cash and cash equivalents at the start of the year 5,163 21,872 _______ _______Cash and cash equivalents at the end of the year 17 13,250 5,163 1. REPORT AND ACCOUNTS The financial information contained in the Preliminary Results does notconstitute the Company's full financial statements. The information for theyears ended 31 March 2006 and 31 March 2005 is extracted from the auditedaccounts for the year ended 31 March 2006, upon which the Auditors haveexpressed an unqualified opinion. 2. BASIS OF CONSOLIDATION The consolidated financial statements incorporate the financial statements ofthe company and entities controlled by the company (its subsidiaries) and areprepared to 31 March 2007. Subsidiaries are consolidated from the date controlis transferred to the group and cease to be consolidated from the date controlis transferred from the group. The previous acquisition of Arlington Group plc occurred prior to the date oftransition to IFRS and therefore the Company has taken advantage of theexemption provided in IFRS 1 not to revisit the transaction. No goodwill wascreated on the transaction and the carrying values of the assets and liabilitieswere not adjusted by virtue of this transaction. When the Company owns greater than 20% of the equity share capital of aninvestee company, it considers whether this gives it significant influence overthe affairs of that company. Currently, in all cases the Directors believe thatdue to independent management and shareholders it does not have significantinfluence over such companies and accordingly does not account for them asassociates but as held for trading investments. 3. TAX ON PROFIT ON ORDINARY ACTIVITIES The Company is registered in Bermuda, where the tax rate on profits is nil.Consequently no tax is payable in Bermuda. However, UK Corporation Tax ispayable on profits earned by Arlington Group plc, a subsidiary. The rate of UKCorporation Tax applicable to Arlington Group plc is 19% (2006: 30%). Analysis of charge in the year 2007 2006 £000 £000 Current tax:UK Corporation tax based on the results for the year 12 617at 19% (2006 - 30%)Adjustments in respect of prior periods 37 23 ----------------- ----------------- Total current tax 49 640 Deferred tax (4) 4 ----------------- ----------------- 45 644 ================= ================= 4. EARNINGS PER SHARE Basic earnings per share amounts are calculated by dividing the net profit forthe year attributable to ordinary equity holders of the parent by the weightedaverage number of ordinary shares outstanding during the year. Diluted earnings per share amounts are calculated be dividing the net profitattributable to ordinary equity holders of the parent by the weighed averagenumber of ordinary shares outstanding during the year plus the weighted averagenumber of ordinary shares that would be issued on the conversion of all thedilutive potential ordinary shares into ordinary shares. The Group has one classof dilutive potential ordinary shares, being those share options granted wherethe exercise price is less than the average market price of the Company'sordinary shares during the year. Reconciliations of the earnings and weighted average number of shares used inthe calculation are set out below: 2007 2006 Earnings Weighted Per-share Earnings Weighted Per-Share average amount average amount number of (pence) number of (pence) shares shares (£'000) ('000) (£'000) (£'000) ('000) Basic EPSEarnings 265 64,611 0.41 2,835 64,826 4.37attributableto ordinary shareholdersEffect of dilutivesecuritiesOptions - 225 - - 246 (0.01) _______ _______ ______ _______ _______ ______Diluted EPSAdjusted 265 64,836 0.41 2,835 65,072 4.36earnings _______ _______ ______ _______ _______ ______ Earnings per share from continuing operations Basic EPS 265 64,611 0.41 2,835 64,826 4.37Profit for the year from operation - - - (486) - (0.75) _______ _______ ______ _______ _______ ______ Basic EPS 265 64,611 0.41 2,349 64,826 3.62fromcontinuingoperations _______ _______ ______ _______ _______ ______ 2007 2006 Earnings Weighted Per-share Earnings Weighted Per-Share average amount average amount number of (pence) number of (pence) shares shares (£'000) ('000) (£'000) (£'000) ('000) Earnings per share from continuing operations (continued) Diluted EPS 265 64,836 0.41 2,835 65,072 4.36Profit for the yearfrom discontinuedoperation - - - (486) - (0.75) Diluted EPS 265 64,836 0.41 2,316 65,072 3.61fromcontinuingoperations _______ _______ ______ _______ _______ ______ Earnings per share from discontinued operations Basic EPSProfit for - 64,611 - 486 64,826 0.75the yearfrom operation Basic EPS - 64,611 - 486 64,826 0.75fromdiscontinuedoperations _______ _______ ______ _______ _______ ______ Diluted EPSProfit on - 64,836 - 486 65,072 0.75 sale ofsubsidiaries Diluted EPS fromdiscontinuedoperations - 64,836 - 486 65,072 0.75 _______ _______ ______ _______ _______ ______ 5. ANNUAL REPORT AND ACCOUNTS Copies of the full Report and Accounts will be sent to shareholders on 28 September 2007and will be available from the Secretary at the company's registered office,Reid House, 31 Church Street, Hamilton, Bermuda, HM11. 28 September 2007 Enquiries; Bobbie Hilliam, Evolution Securities 0207 071 4300 This information is provided by RNS The company news service from the London Stock Exchange